Money Supply expands by 15% YoY in February’ 21

April 13, 2021 (MLN): The total money supply circulating within the economy in February 2021 has been recorded at around Rs25.94 trillion, according to provisional accounts on Monetary Aggregates for the month, maintained by the State Bank of Pakistan.

The money circulating within the economy until last month was Rs25.71 tr while until the corresponding month of last year, the figure was Rs22.51 tr. This means that the money supply has increased 15.23% over the year, while decreased 1% over the month.

Having broken down the overall money supply into broad categories, the SBP data shows that a total of Rs.6.48 tr were circulated as notes while Rs11.71 tr accounted for transferable deposits which comprise all deposits that are exchangeable on demand at par without penalty/restriction.

The currency circulated as notes which has been high in Pakistan relative to other developed and emerging economies because of high informal economy, rose by over Rs1 tr or 20% over the year.

Apart from this, other deposits constituted Rs3.49 tr in February 2021, up by 9%YoY. Other deposits represent all claims other than transferable deposits in national or foreign currency that are represented by evidence of deposits.

On the other hand, coins circulated declined from Rs9.03 billion in February 2020 to Rs8.36 bn in February 2021. While, on monthly basis, it diminished by nearly 1% MoM from Rs8.29 bn.

Furthermore, Rs272.2 bn worth of deposits were held with post offices while National Saving Schemes held Rs3.98 tr, marking a growth of 4% YoY from Rs3.8 tr.

Copyright Mettis Link News